HOUSTON, Oct. 03, 2019 (GLOBE NEWSWIRE) -- Certarus Ltd. ("Certarus" or the "Corporation") is pleased to announce that it has entered into a two year compressed natural gas (“CNG”) supply agreement with a leading Large Scale Independent Permian Energy Company (“Energy Company”) to support its strategy to reduce environmental impacts, including carbon emissions in the Permian Basin.
Through this contract, the Energy Company will displace the use of diesel fuel across its entire suite of operations with locally sourced CNG produced from its regional midstream network. In addition to reducing carbon and other air emissions, the contract will deliver fuel cost savings to the Energy Company and result in lower overall mileage exposure associated with fuel transportation. This more effective utilization of natural gas in the Permian Basin will also contribute to reducing the amount of gas that would otherwise be flared in the region.
Under the agreement, Certarus will displace a minimum of 27,000,000 gallons (100,000,000 Liters) of diesel fuel with CNG, with the option for the Energy Company to expand up to 60,000,000 gallons (225,000,000 Liters) during the term. Certarus expects to commence CNG supply to the Energy Company under this agreement immediately.
"Through our market-leading North American platform, Certarus provides solutions to industrial and other large volume customers to lower both their carbon emissions and costs. Our customers are appreciative of being able to immediately realize on this environmental and economic win-win as we all work towards a more sustainable future," said Nathan Ough, Vice President of Certarus.
Certarus has now entered into three major contracts this year in the Permian Basin as energy companies actively secure an uninterrupted supply of clean burning CNG to support their operations. The Corporation is doubling its permanent electric CNG compression infrastructure in the Permian Basin to meet the growing demand.
The Corporation has invested significant resources to build-out a reliable compressed natural gas platform to supply both dual fuel and electric applications. Energy companies across North America, including Diamondback, Exxon (via its XTO subsidiary), Shell, EOG Resources and many others are increasing their use of dual fuel or electric applications to achieve reduced environmental impacts and lower costs. Through the use of natural gas in place of other more emission-intensive fuels, Certarus provides a supply of clean, cost effective energy to help support corporate Environmental, Social and Governance (“ESG”) best practices.
Certarus is a leader in providing a fully integrated compressed natural gas (CNG) solution for the North American market. Our primary business is the creation of a “Virtual Natural Gas Pipeline” through the compression, transportation and integration of CNG for the energy services, mining, forestry and industrial sectors. Our solutions target diesel and propane fuel displacement projects to lower operating costs and improve environmental outcomes.
Certarus is focused on providing cost effective carbon reduction solutions by utilizing abundant low cost North American natural gas.
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Certain information contained in this document constitutes forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Corporation's control including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, environmental risks, competition from other industry participants, the lack of availability of qualified service providers, personnel or management and ability to access sufficient capital from internal and external sources, the inability to obtain required consents, permits or approvals and the risk that actual results will vary from the results forecasted and such variations may be material. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Corporation's actual results, performance or achievement could differ materially from those expressed in or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Corporation will derive therefrom.
The forward-looking statements contained in this document are made as of the date hereof. Certarus disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Additionally, Certarus undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.